Many people find leasing as a better alternative to financing a new car. Because lessees pay for only the depreciation of the vehicle and not the full value, their monthly payments may be lower. With leases lasting 24 to 36 months, they are not stuck in a long-term payment plan. In addition, the warranty covers the vehicle for the length of the lease.
A study done by iSeeCars found that, after three years, the average depreciation of a car is 39.1%. The automotive research firm noted that three years is the average term of a lease and the ideal age of a used car for prospective buyers. “Three years is a popular age for used car buyers because the cars have taken a major depreciation hit, but likely have many of the latest modern safety and technology features,” stated Phong Ly, iSeeCars’ chief executive officer. Continue reading “Average Car Depreciates by 39.1% after Three Years”